State of the City Address

Thank you. Thank you. Thank you.
I don't know that I'll ever get that applause if I come back.
Thank you.
Mr. Speaker, Members of the City Council, Honored Guests
First I want to congratulate both Gifford Miller on his election as the new Speaker
of the City Council, and all your members. Let me also congratulate Comptroller
Bill Thompson, Public Advocate Betsy Gotbaum and all 5 Borough Presidents, one
of whom is not new, but, she's my Borough President. And also acknowledge Mr.
Mayor, thank you for coming. And I would be remiss if I did not also acknowledge
Guy Molinari, who was one of the great Borough Presidents of all times and was
so helpful to me, Guy, thank you for coming. And just to show you that I care
about the commercial world, the provider of electricity to my home, Gene McGrath.
Thank you.
The voters have chosen us to work together at a moment in the City's history more
critical than perhaps any other in our lifetimes. They want us to put aside partisan
differences, and adhere to a new attitude of cooperation and collaboration. They
know we are entering difficult times. They want us to make the difficult choices.
And they want us to do so quickly, decisively, and together.

I know we will do it because
although we have different political affiliations, we share the same faith-
- - - our belief in New York.
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When New Yorkers joined together on September 11th, we inspired the nation and
changed forever the image of our urban America.
City workers and ordinary citizens lifted themselves above personal tragedy
and found the common spirit of humanity that unites us all. America embraced
New York and we welcomed America's boundless support.

We have been attacked; we
have been tested; and now we are on the path to renewal and recovery.

At the start of my administration
I am pleased to report to you that the "state of the City" is strong.
Today, among the proudest words spoken by an American are, "I am a New
Yorker."

And this, after the terrible tragedy of September 11th. Now, no one doubts the
resiliency of New Yorkers. Less than five months ago, New York City experienced
the most lethal attack from a foreign enemy that has ever occurred in the history
of our country. Almost 3,000 people died that day, including more than 400 of
our firefighters, police officers, and emergency service workers.

New York has long been a
City of champions. Now the world knows we are a City of Heroes.

We will always remember
the bravery of those who gave their lives to save 25,000 fellow New Yorkers.

On behalf of this City,
we make this pledge: Their bravery, will never be forgotten, their memory will
endure.

We should also recognize
how much we have learned -- about our City, about our ties to the Nation and
the world. In the face of a vicious attack, New Yorkers came together, and helped
each other cope with the loss, the pain, and the shock to our everyday lives.
Due to the round-the-clock efforts of the workers at Ground Zero, the clean
up and recovery at the World Trade Center site are far ahead of schedule and
under budget.

Rescue and construction
workers toiled - and still do --- day and night. The work at Ground Zero, the
work there has proceeded far faster than anyone expected, proving that no one
works as hard and as well as New Yorkers.

Under the leadership of Nick Scoppetta, we are rebuilding the Fire Department,
and more than 300 probationary firefighters have been just sworn in.

Former Mayor Rudy Giuliani
and Department of Emergency Management Commissioner Richie Sheirer, whose joint
leadership has been hailed across the nation, have given us a base to fashion
an even stronger public safety structure.
As part of that effort we intend to rebuild our emergency command center that
was destroyed in the devastating September attack. I have designated Senior
Advisor Vincent LaPadula to coordinate the center's reconstruction at a new
location in Brooklyn.

When New Yorkers join together,
nothing can stop us.

Though we must start by
rebuilding Lower Manhattan; that's only a start.
We must stimulate economic growth across the City.
We must modernize the management of government.
We must renew our waterfront.
And, we must reform our school system.
And, we must be ever vigilant to make sure New York continues to be the safest
large City in the nation.

Our crime rate continues
to fall. Since the start of the New Year, crime is down more than 8%.
We continue to focus on our quality of life. Police Commissioner Ray Kelly has
launched "Operation Clean Sweep," an initiative that targets quality
of life violations by aggressively policing low-level offenders, and establishes
a crime-tracking system for the City's homeless shelters.

To meet the new reality,
of post-9/11, Commissioner Kelly has put a new emphasis on keeping our City
safe from terrorism. In today's world, we must deal with both crime prevention
and terrorism. To fight global threats, for the first time, the NYPD has created
a Deputy Commissioner of Intelligence and a Deputy Commissioner of Counter-Terrorism.

I am pleased to announce
that Frank Libutti, a retired Marine Lieutenant General, is here with us today,
and he will be the first Deputy Commissioner for Counter-Terrorism the City's
ever had. He will direct training, prevention, and investigations. In addition,
David Cohen, the new Deputy Commissioner for Intelligence, will be responsible
for strengthening our ties to federal and state agencies, foreign governments,
and the private sector.

And I am looking forward
to continuing our work with secretaries Tommy Thompson of health and human services
and Tom Ridge of homeland security for strategies for improving regional public
health delivery systems in the event of a bio-terrorist attack.

But while we must prepare
for the unthinkable, we are intensifying our efforts to bring other major events
to our City. We are soliciting athletic and cultural extravaganzas.
I will meet with the leaders of the two major political parties to encourage
both the Republican and Democratic National Parties to hold their Conventions
here in New York in 2004.
And I wholeheartedly endorse Congressman Rangel's proposal to hold a one-day
special session of Congress here as well.

The meeting of the World
Economic Forum in New York this week also demonstrates our strong commitment
to free speech without disrupting activities. Our Police Department will once
again prove that it has the experience and skill to coordinate peaceful demonstrations
and world-class conventions at the same time ---- in the same City.

I could go on and on. The signs are all around us: New York is safe, New York
is strong, New York is open for business, and New York is attractive to labor.

Since the attack, we have
also forged a new partnership with leaders in Albany and Washington -- for the
attack on the World Trade Center was an attack on our whole nation and all our
ideals.

Let no one forget that New
York City was on the frontline in the battle with terrorism.
Today, almost everyone in our state capital understands that New York City is
the economic engine that drives this State. And officials in Washington recognize
that New York City is the nation's vital link to the global economy.
For many years, Senator Daniel Patrick Moynihan highlighted the enormous contribution
that New York makes to the nation's treasury, typically paying far more in taxes
than it received in federal spending. He persistently argued that when New York
flourished, the nation benefited with stronger tax revenues.
I think it is fair to say that the lessons of Senator Moynihan are widely accepted
today. Our leaders now understand that "what's good for New York is good
for the nation."

On behalf of all New Yorkers,
I want to thank our President, George W. Bush for all that he has done to help
New York. We should also be grateful to Senators Schumer and Clinton and our
Congressional Delegation led by Charlie Rangel for their efforts to provide
federal aid to the residents and businesses in our City. Federal investment
in us is both compassionate and intelligent. As goes New York City, so goes
this great country.

As for the help Governor
Pataki, Senate Majority Leader Bruno and Assembly Speaker Silver gave this City
over the last 4 months - to say we are grateful is a vast understatement. Gentlemen,
we will not forget your generosity and leadership. On behalf of 8 million people,
thank you again.
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Even before September 11th,
our economy was starting to sag, and now we face serious fiscal problems. The
budget gaps for the next 3 years are momentous. They will not go away without
sacrifice. Managing our budget will require discipline.

Our deficit is the product
of several forces: a weaker economy that generates lower tax revenues, our obligations
to pay higher salaries and wages, capital commitments that impose increased
interest costs, and little surplus to USE in next year's budget. On February
13th, my administration will present a fiscal plan that outlines our specific
priorities and programs.

New York is the most compassionate
City in the world. We do more things for more people than any other municipality.
But we are now in the midst of a fiscal crisis, one that we did not create,
but one that together we must solve.

As you know, on New Year's
Day, I announced a 20% personnel and expense reduction in the Office of the
Mayor and urged my government colleagues to do the same. My Chief-of-Staff,
Peter Madonia is almost finished in implementing both cuts. I commend the Speaker
for reducing the stipends to Council leaders and for the Council's commitment
to cut spending.

But that is just a beginning.
Currently, New York City's municipal workforce has grown to be 1/7th the size
of the whole federal government if you don't count the military. Our people
serve 8 million citizens. Theirs serves 250 million. Put directly, today we
just don't have the money to continue this level of staffing.

I know all you elected officials will demonstrate your leadership by sacrificing
before they ask the other 8 million New Yorkers to do so. I promise to work
with you to implement efficiencies in all our agencies and in your departments.
If you cannot find ways to do more with less, I will be very happy to send in
my staff to show you how! No budget ever existed that could not benefit from
a fresh, "let's start from zero" approach.
Thank you.

THESE ARE HARD TIMES.
WE MUST BE HARD-NOSED.
WE MUST BE HARD-HEADED.
BUT WE CAN NOT BE HARD-HEARTED.

Just because we can't do
it today, doesn't mean we won't be able to eventually have the structures and
programs we want. In many cases though, it will be necessary to postpone plans,
delay dreams, and stretch out timeframes. We have no choice we cannot raise
taxes at this time. And the law requires us to live within our means.
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Let me focus in the limited
time we have left on 6 examples of the kinds of initiatives my Administration
is and will undertake.

First, we must search in
all directions for ways to balance our budget. One example is the urgent need
to reform tort laws in Albany. In 1978, New York City spent $23 million in tort
payouts. In fiscal year 2001, that figure had jumped to an astronomical half
a billion dollars, or more than 20 times what it was just 2 decades earlier.
People with legitimate claims should get fairly compensated. But under the current
system, New York pays far more than its fair share of damage awards.

The City's tort payouts
are larger than the budgets of most City agencies; indeed they are bigger than
the budgets of most municipalities in New York State. The hundreds of millions
of dollars the City spends on tort judgments could be used to pay for vital
services. It alone represents over $6,000 in extra salary we could otherwise
give to each of our 80,000 teachers!
And have no doubt, the rapping gavel of tort liability ultimately hammers the
taxpaying public. Working with Deputy Mayor Carol Robles-Roman and Corporation
Counsel Michael Cardozo, we will seek to reform the state's tort laws to make
it fairer to all municipalities, including New York City.
Unfortunately, many have the attitude that if it's the City's liability, it's
not theirs. People that think that are about to experience a rude awakening
as we have to do without!

There are other abuses that
soak up our limited resources and I will document and attack each over the months
ahead.
But Let there be no mistake. We face difficult budgetary decisions. Just eliminating
abuse and waste will not close the gap. Working together to make choices, WE
can solve our problems. Not easy - but necessary.
And, by solving today's fiscal problems, we can assure a strong future in the
years ahead.
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The second initiative I'd
like to mention is staffing. We must have the right people in place to do the
problem solving. Since November my first priority has been to put together a
team to lead New York City through the tough times we face. I am proud that
we have attracted talented and dedicated individuals, from all five boroughs,
from all walks of life, who represent a broad range of ethnic and racial backgrounds.

Some of these individuals
have built successful careers in the agencies they are now leading. Others are
new to City government and will bring a fresh approach to traditional ways of
doing things. Most importantly, they are all committed to working together,
as a team.
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Thirdly, we must create
the best environment for public service we can to improve efficiency. That's
why we created the "open office," popularly known as the "bullpen,"
just down the hall. Here in one room, everyone works close to each other, making
it possible to test new ideas, get instant feedback, and exchange information
on the spot. Nothing comes close to direct face-to-face contact; that's what
the "bullpen" is all about. There are no walls, no barriers to communication,
and not even much desk space. Anyone can get up and talk to anyone at any time,
and that includes me.

We are already extending
this emphasis on communication and teamwork to other levels of government. The
days of bureaucratic warfare and interagency battles in the delivery of services
should soon be history.

As elected officials, we
must remind ourselves that we are here to serve all of the people, not just
those who voted for us. That's why we are doing everything possible to create
"Openness in Government."

Anyone can now contact City
Hall 24 hours a day, via email or voicemail.
Our City Hall press office is convening monthly meetings with representatives
of the minority and ethnic media in the City. Thank you.
"Open Government" is not just a slogan; it's the only effective way
to deal with complicated problems.

As part of "Open Government,"
we will create a "Citizen Service Center," that will allow New Yorkers
to reach all services by calling one phone number, "3-1-1." This will
make City government accessible to every resident of this great City. Right
now, New York City operates more than 40 separate call centers and hotlines,
which can be an obstacle course for the average citizen. There are 11 pages
of listings in the phone book under NYC. No one can be knowledgeable enough
to find his or her needle in a haystack that big!

It will take time, but eventually
New Yorkers will have only two numbers to reach government: 9-1-1 for emergencies
and 3-1-1 for everything else.

We must also bring clarity to management of municipal agencies. Therefore, I
am asking Deputy Mayor Marc Shaw to overhaul the Mayor's Management Report.
After 25 years, this report grown to over 1,000 pages --- three volumes ---
with more than 4,000 statistical indicators. The sheer size alone of this document
makes it difficult for anyone to use.

The Mayor's Management Report
should be easy to use and accessible electronically. Simply put, it must provide
a way to open up management of our City services to citizens, civic groups and
public officials.

We must bring the same openness
to our election process. I will introduce a program to improve ballot access
and simplify voting, particularly for public initiated proposals and referendums.
To open government and attract new ideas, the people themselves have twice explicitly
voted for term limits. We cannot ignore their will. They want the openness new
faces bring- and they will get it! We will not go back!
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The fourth issue for today
is education! We must fix our school system!

You and I represent all
the neighborhoods of this City.
Together, we need to provide a school system that serves all our communities
and all of the people of this City. Fundamental reform of our school system
is essential if we are serious about educating our children.

Currently, The Board of
Education does not work for teachers, parents, students, or even for its members.
It does not work for anyone!

There are simply too many
cooks over at 110 Livingston Street, each with their own competing recipe, which
produces a political stew rather than a sound education.

We do not need more commissions; we do not need more studies, we have waited
too long for change. It's time to act.

If anybody didn't think
that the time was now, just think what you saw in this council with the number
of people that stood up and said enough.

I urge Speaker Silver, Majority
Leader Bruno, their respective houses, the teachers, the business community,
and parents to work with Deputy Mayor Dennis Walcott and me to transform our
educational system into a high quality school system that we can be proud of.
To achieve systematic change in our schools, we must have Mayoral accountability
in education.

Some people claim that mayoral control of the school system is just a "power
grab." I disagree. This is not about power, but about accountability in
education.

We do need to create more
opportunities for parents to participate in our educational system. But local
school boards are just not the way. As many of you know, participation in local
school board elections is often less than 3%.
That means that more than 97% percent of the eligible voters are rejecting the
current system of school governance by refusing to participate. The state legislature
has already agreed to delay community school board elections.
Now we should seek to abolish these boards totally. Parents want to talk to
educators - not to "middlemen."

We cannot allow the forces
of inertia and resistance to stand in the way of school reform. We cannot mortgage
our children's future to politics and patronage.

Reforming the governance of our school system is just one of the efforts to
start, we must start to improve education. We must remove disruptive kids from
the classroom, we must strengthen teacher evaluation and training, we must improve
teacher retention by focusing compensation on those educators just starting
their careers. We must also give the principals the authority to match the responsibility
they already have to run their schools so as to produce the results the parents
want.

Think about this. More than
40% of our public school teachers quit within the first six years. More than
15% of our teachers are not certified, and under current state rules, they will
not be allowed to teach in September 2003. Even worse, we are not able to deploy
our most experienced and talented teachers where they are most needed.

The Board of Education is
intrinsically incapable of meeting the educational needs of our children. It
must go.

Let us work together to
reform our school system now. Make no mistake about it. All of us in this room
were elected to improve education. And that does not mean simply rearranging
the deck chairs on the deck of our educational Titanic.
When City Council members run for reelection in 2 short years, this time the
voters will know where each individually stood on real reform. And the same
for those of us with 4 year terms. Rightly or wrongly, the public has clearly
said "enough." They are saying "Read our lips. Eliminate the
Board of Education and the local school boards. Then, give us control over our
schools through the Mayor."
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The fifth subject I wanted
to address with you today is of import-it is our livelihood, jobs and development.

Between 1992 and 2000, New
York City's economy grew by 439,000 jobs. The number of working New Yorkers
grew even faster than the number of jobs in the City. Now, we face a totally
different climate: the slowdown that began last spring has been aggravated by
the attack on our City.

As we manage our budget
and reform our schools, we must remember that the key to our future is a strong
economy. Our initial focus must be on Lower Manhattan but a five - borough strategy
is essential for long-term economic growth.

Under the leadership of
Deputy Mayor Dan Doctoroff, we are working closely with Governor Pataki and
John Whitehead of the Lower Manhattan Redevelopment Corporation to stimulate
growth. An appropriate memorial must be built on the World Trade Center site,
but we must also rethink the entire role of Lower Manhattan, so that it can
continue to be a world center as well a thriving residential community and magnet
for tourists.

Essential to the future
of Lower Manhattan is a rebuilt and improved transportation infrastructure.
The MTA should be commended for reopening the Chambers Street station for the
"E" train this week and for their plans to restore the #1 and #9 lines
by the end of the year so New Yorkers from all boroughs can get to work.

But, still more must be
done to improve access to Lower Manhattan from the west and east. Improved ferry
service is critical. Already, more people commute by ferry in New York City
than in any other City in the United States. But, new faster ferries are needed.

The decision by American
Express to return to their headquarters at the World Financial Center is the
best example of corporate commitment to this City. Ken Chenault, Chairman and
CEO of American Express, recognizes that this City is the heart of the global
economy and that American Express' future is New York's future. Just let me
tell you, I've started to use only my American Express Card after Ken made that
commitment and I urge you to do it too.

Tourism is one of the City's
most important industries, generating jobs in restaurants, hotels, retail stores,
and cultural institutions. An expanded and enhanced convention center is a necessity
if New York is to compete for major conventions and meetings. We must work with
Governor Pataki to enlarge the Javits Center so we can attract more visitors
to this City.

Improving mass transit to
the far west side is a necessity to stimulate new activity in this part of our
City. From 1990 to 2000, property tax collections actually declined by 20% in
the Javits Center area. It's time for a new approach to the development of the
far west side that includes extending the #7 line accompanied by new parks and
creative rezoning to unlock the potential of the area.

New York has more than 500
miles of shoreline, yet much of our waterfront is inaccessible and neglected.
We must bring new life to the waterfront, from the North Shore of Staten Island
to the under-used waterfront of Brooklyn's Gowanus Canal. Now is the time for
Albany to pass realistic brownfield legislation that will allow old industrial
waterfront sites - that will allow old waterfront sites to be converted into
housing, parks and other developments.

The AFL-CIO's pension fund's
recent $750 million investment in New York housing construction is just a start.
But it shows what can be done when we all work together.

We must also develop a strategy
to make sure that Governor's Island is returned to our City with new educational
activities that are economically feasible and environmentally sound.

And today, I want to announce
that we will complete a multi-use recreational path around the entire edge of
Manhattan. The success of the Hudson River Park demonstrates the need to make
our entire waterfront accessible to walkers and cyclists.

The September 11th attack
highlighted our links with the rest of the metropolitan region. We will establish
a revitalized relationship with the Port Authority of New York & New Jersey.
We must work together on several critical issues: improvements on the Brooklyn
waterfront, assuring new investment in our airports in Queens, and new infrastructure
in Lower Manhattan.

Our Economic Development
Corporation will be reorganized with a new "client-centered" approach
to retain and attract companies. At the same time, we will reinvigorate the
Department of Business Services so that it can focus on small organizations.
In these tough times, we must strengthen Business Improvement Districts and
local economic development corporations throughout the City.
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And sixth there are the
things that make New York, New York.
I am especially pleased to support the planned renovation of Randall's Island,
which will include an entertainment center along with new and improved athletic
facilities. The planned improvements at Randall's Island will create 350 summer
jobs for youth and help attract additional commercial life to the three surrounding
boroughs.

New York City will also
compete aggressively for the 2012 Olympics. The Olympics provide a unique opportunity
to reinforce New York's role as the premier world city, to build new athletic
facilities in all five boroughs, and to link our dynamic immigrant neighborhoods
to the world community of nations.

As you all know, New York's
economy is driven by ideas and information. Our cultural institutions play a
critical role in creating a climate that fosters creativity and innovation.
I have asked Deputy Mayor Patti Harris to harness the strengths of our business
community to the needs of our cultural sector. The arts can and must play a
pivotal role in strengthening our City's spirit, our economy, and our quality
of life.

The arts are going to be
increasingly important to our City as a whole. That's why I am so pleased to
see that organizations such as the Andrew Mellon, Warhol, Ford and McArthur
Foundations and others in the non-profit sector have stepped forward to aid
museums, cultural organizations, and libraries weakened by the September 11th
attack or supporting our much needed social services.

In May, we will host the
first annual Tribeca Film Festival. By bringing world-class events - thank you
- by bringing world class events to Tribeca, everyone will see the cultural
vitality and strength of our City. The new festival will attract filmmakers
from all over the world and showcase world premier and independent films.

New York City's cultural life is energized by the diversity of ethnic and racial
groups in this City. I am enthusiastically supporting the new Bronx Borough
Center Library that will include a Latino and Puerto Rican Cultural Center.
The new Bronx library will be an educational, technological, and cultural center
for all Bronx residents. By harnessing support from the private sector, the
state, and the City Council, the new Bronx library proves that it is possible
to be bold and move ahead, even in these hard times.
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And while we must tighten
our belts, that does not mean that there will be a lack of progress. We must
close a $4 billion budget gap in each of the next years, each of the next three
years - In a $42 billion budget that has only $14 billion that is not already
committed by law, court order or contract. Four out of fourteen, not four out
of forty-two. To do this, we must work together. We must campaign for "openness
in government," fight for mayoral control of the school system, and understand
that fiscal prudence today will insure economic prosperity in coming years.

We have faith in our City
and its people. And the people have put us here because they have faith in us.
Together we will tackle these problems. We must respond now as New Yorkers have
always responded to challenges.

WE MUST AIM HIGH
WE MUST SUCCEED.
WE WERE ELECTED TO DO NO LESS.
TOGETHER, LET US PROVE THE VOTERS WERE RIGHT.
THANK YOU VERY MUCH.